A government budget deficit ________ the ________ interest rate and crowds out private investment, which ________ real GDP growth
A) raises; nominal; slows
B) raises; real; slows
C) raises; real; accelerates
D) lowers; real; slows
E) lowers; nominal; slows
B
Economics
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If everyone knew in advance the exact rate of inflation:
A. the economy will have reached its long run equilibrium. B. borrowers would be discouraged when inflation will be low and lenders when inflation will be high. C. the risk of the breakdown of financial intermediation would increase. D. the exact rate of inflation wouldn't matter so much because people could prepare.
Economics
Compared to the no-trade situation, when a country imports a good, which of the following will occur?
What will be an ideal response?
Economics